ZTE Purchases $3 Billion From Five U.S. Technology Vendors

October 25, 2010 05:05 PM Eastern Daylight Time

DALLAS--(BUSINESS WIRE)--ZTE Corporation (0763.HK), a leading global provider of
telecommunications equipment and network solutions, today signed
purchase agreements with five U.S. technology vendors at total value of
3 billion USD. Under these framework agreements, ZTE will purchase
semiconductor components from QUALCOMM Incorporated (NASDAQ:QCOM), Texas
Instruments Incorporated (NYSE:TXN), Freescale Semiconductor (NYSE:FSL),
ALTERA Corporation (NASDAQ:ALTR) and Broadcom Corporation (NASDAQ:BRCM)
over the next 3 years.

Developing close ties with U.S. chip vendors has allowed ZTE to develop
highly competitive telecom solutions while reducing the time to market
of its products. In the past, ZTE has paid over USD $4 billion to U.S.
vendors for intellectual property and hardware products.

“As a publicly traded and transparent company with more than 18.72%
equity owned by European and American investors, we believe it is very
important for ZTE to cooperate with U.S. partners and continue to
increase our investment in the U.S. market,” said Mr. Ye Weimin, Senior
Vice President of ZTE Corporation. “We are keen to deepen our
relationships with both U.S. suppliers and telecom carriers in order to
meet the needs of our U.S. customers and provide highly secure and
innovative products and solutions. It’s an exciting time for ZTE and we
are very optimistic about what can come from today’s signed agreements.”

With steady growth since its founding 25 years ago, ZTE’s operating
revenue increased 10.89% year-on-year to USD $4.524 billion in the first
half of 2010, of which 18% is contributed from across European and
American markets. ZTE remains focused on its innovation strategy,
committing 10% of its revenue into the research and development of
products. Across the 15 ZTE research centers around the globe, there are
over 30,000 employees dedicated to research and development which have
led to ZTE’s ownership of over 30,000 telecom patents and more than
5,000 PCT applications. By delivering high quality and cost effective
products and solutions, ZTE has worked with over 500 operators in more
than 140 countries and established long-term partnerships with global
telecom giants such as Telecom France, Vodafone, Telefonica (Spain),
Telstra (Australia) and Verizon.

About ZTE

ZTE is a leading global provider of telecommunications equipment and
network solutions with the most comprehensive product range covering
virtually every sector of the wireline, wireless, service and terminals
markets. The company delivers innovative, custom-made products and
services to over 500 operators in more than 140 countries, helping them
to meet the changing needs of their customers while achieving continued
revenue growth. ZTE’s 2009 revenue led the industry with a 36% increase
to USD 8,820.7 million. ZTE commits 10 percent of its revenue to
research and development and takes a leading role in a wide range of
international bodies developing emerging telecoms standards. A company
with sound corporate social responsibility (CSR) initiatives, ZTE is a
member of the UN Global Compact. ZTE is China’s only listed telecom
manufacturer, publicly traded on both the Hong Kong and Shenzhen Stock
Exchanges (H share stock code: 0763.HK / A share stock code: 000063.SZ).
For more information, please visit www.zte.com.cn.